New York Rolls Out Updates to Mortgage Servicing Rules
As stated in the alert distributed on December 23, 2019, the New York Department of Financial Services’ (NYDFS) Final Mortgage Servicing Rules (Final Rules) were published and became effective on December 18, 2019. The Final Rules are applicable to persons who are engaged in the servicing of mortgage loans in New York State, whether or not that person is registered as a mortgage servicer (i.e., as a matter of state law, the rules apply to organizations exempt from licensing and registration).
The Final Rules were officially adopted on December 18, 2019 after nearly a decade of Emergency Rules enacted under Part 419 and contain material differences.
Since our December 23, 2019 alert, we compared the Final Rules to the prior Emergency Rules under Part 419 (Emergency Rules) and highlighted the key material changes that servicers should be aware of. We also compared the new/changed Final Rules against the RESPA and TILA servicing regulations (Federal Rules) to highlight key distinctions between some of the new Final Rules and the analogous Federal Rules that servicers should be aware of. Servicers should also note that while the Final Rules are reorganized and renumbered, many of the existing requirements contained in the Emergency Rules continue to apply.
If you have questions, reach out to one of the authors of this alert or another member of the firm’s Consumer Financial Services team.